Leyland, Nissan to roll out low tonnage CVs

Ashok Leyland Nissan Vehicles, one of the three ventures, will build vehicles in the range of 1.5-7.5 tonnes to take on the likes of Tata Motors and Mahindra & Mahindra at the entry level.

The location of the new plant is yet to be announced. A range of new diesel engines, using common rail diesel injection (CRDi) technology, will be fitted into the new range of light commercial vehicles.

Andy Palmer, Nissan's corporate vice-president in charge of the LCV unit, said: It would be right to assume that the premium versions of these products would be sold as Nissan's and the economy versions with the Ashok Leyland nameplate.

JV ropes in ex-Tata honcho
Joint venture partners Ashok Leyland and Nissan have scored a point by roping in former Tata Motors executive V Sumantran to oversee the Hinduja Group's automotive business.

On April 3, Sumantran, who was also Tata Motors' Engineering Research Centre head, joined Hinduja Automotive as vice-chairman, sharing the portfolio with R Seshasayee, managing director of Ashok Leyland.

Hinduja Automotive is the London-based group's holding company that manages all automotive related businesses, including Ashok Leyland, Hinduja Foundries and the JVs with Nissan.

Sumantran, who quit Tata Motors in August 2005, has been advising with Indian and multinational automotive manufacturers under his own banner Sumantran Consulting. Since April this year he as closed this private practice and joined the Hinduja Group to spearhead its automotive business.

The entry of Ashok Leyland with Nissan in the LCV segment is likely to spark competition in the lower end of the commercial vehicle market in India. Ashok Leyland and Nissan today signed pacts for three JVs.

In Ashok Leyland Nissan Vehicles, the commercial vehicle JV, Ashok Leyland will hold 51 per cent and Nissan Motor hold the remaining. In Nissan Ashok Leyland Powertrain, Nissan will hold 51 per cent and Ashok Leyland will hold the rest. Both companies will be equal partners in Nissan Ashok Leyland Technologies, the technology development venture.

The aggregate investment in all three companies will be around Rs 2,415 crore. The enterprise will involve a capacity of 100,000 vehicles in the first phase and will be scaled up subsequently. The initial focus will be on the domestic market.